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2010 (11) TMI 895 - HC - VAT and Sales TaxSetting aside the penalty order passed by the assessing officer Held that:- Declaration form ST-18A was neither produced at the time of checking of the vehicle nor along with reply to show-cause notice before the assessing officer. Therefore, it is a clear case of breach of provisions of section 78(2) of the Act. The Deputy Commissioner (Appeals) while setting aside the penalty order observed that the assessing officer did not make any inquiry and failed to prove the guilty mind or mens rea on the part of the assessee. Therefore, the penalty order is liable to be set aside. The reasoning assigned by the Deputy Commissioner (Appeals) is contrary to the judgment of the honourable apex court in Guljag Industries v. Commercial Taxes Officer reported in [2007 (8) TMI 344 - SUPREME Court] wherein the honourable apex court held that mens rea is not essential ingredient for contravention of section 78(2) of the Act. Apart from above, the Deputy Commissioner (Appeals) as well as the Rajasthan Tax Board, both have set aside the penalty order on the ground that penalty order has been passed against the owner of the goods, whereas penalty order could not have been passed against owner of the goods for an offence relating to the period prior to March 22, 2002. The reason assigned by both the appellate authorities is illegal and contrary to the law laid down by the honourable apex court. Revision petition filed by the Revenue is allowed
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